Sapling Acquisition: Key Details, Impact, and What Comes Next

Kallidus, a UK-based HR software provider, has acquired Sapling, a People Operations Platform, to enhance its Human Capital Management (HCM) offerings. This strategic move allows Kallidus to expand into the North American market and address the growing demand for integrated HR solutions. The acquisition signifies a significant step in the industry, combining strengths to offer comprehensive HR and digital learning solutions.

What Is Sapling?

Sapling is a People Operations Platform that focuses on streamlining HR processes and enhancing employee experiences. Although specific details about its founding year are not available, the platform is known for its comprehensive onboarding, offboarding, and employee management solutions. Sapling differentiates itself in the market with its user-friendly interface and robust integration capabilities, making it a preferred choice for organizations looking to optimize their HR functions.

Who Acquired Sapling?

Kallidus is an industry-leading provider of learning and development software, focusing on simplifying compliance and enhancing employee development. Their key products include the Learn LMS, off-the-shelf courses, bespoke digital learning solutions, and performance management tools. Kallidus is trusted by many well-known brands and has received positive reviews for its user-friendly systems and excellent customer support. The company has won awards and is recognized for its innovative approach to learning and development.

When Was Sapling Acquired?

Kallidus acquired Sapling on January 5, 2021. This acquisition aligns with the growing demand for integrated HR solutions, driven by the rise of remote working and increased competition for talent. The timing also reflects Kallidus' strategic expansion into the North American market, following its previous acquisition of Engage in Learning in March 2020. The move is part of a broader trend in the industry towards comprehensive Human Capital Management (HCM) solutions.

Why Was Sapling Acquired?

• Market Expansion: The acquisition of Sapling enables Kallidus to enter the North American market, significantly expanding its geographical footprint and client base. Sapling's existing relationships with about 200 international clients further bolster Kallidus' market presence.
• Technology Integration: By integrating Sapling's People Operations Platform, which automates people workflows and connects HR data, Kallidus enhances its existing offerings. This integration transforms Kallidus into a comprehensive Human Capital Management (HCM) software provider, streamlining HR processes for their clients.
• Competitive Advantage: The acquisition positions Kallidus as a full-suite HCM software and Digital Learning provider, meeting the growing demand for integrated HR solutions. The combined expertise and resources of Kallidus and Sapling provide a one-stop solution for HR and eLearning needs, giving Kallidus a competitive edge in the market.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified.
• Key Conditions or Agreements:
  • The acquisition is backed by Apse Capital, a European private equity firm.
  • The acquisition aims to transform Kallidus into a full-suite HCM software and Digital Learning provider.
  • The acquisition will help Kallidus enter the North American market.
  • Sapling's core HR platform and focus on employee onboarding are highly complementary to Kallidus.
  • The combined team will be 200-strong across offices in the UK, US, and Canada.

Impact on Sapling

The acquisition of Sapling by Kallidus has led to significant changes in operations and management. Kallidus has expanded its team to 200 employees across offices in the UK, US, and Canada, integrating Sapling's workforce into its structure. Sapling will operate as a subsidiary of Kallidus, allowing for a seamless transition and maintaining its core focus on automating HR workflows. This strategic move positions Kallidus to better serve the North American market, leveraging Sapling's established presence and expertise in the region.

In terms of product offerings, the acquisition has enabled Kallidus to offer a more comprehensive suite of HR and digital learning solutions. Sapling's People Operations Platform, known for its robust onboarding and offboarding capabilities, complements Kallidus' existing products, creating a full-suite Human Capital Management (HCM) software provider. While specific employee and customer reactions are not detailed, the leadership's positive outlook and the strategic fit suggest a favorable reception. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.